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Electricity sector in Pakistan

Electricity in Pakistan is generated, transmitted and distributed by two vertically integrated public sector companies, first one being Water and Power Development Authority (WAPDA) responsible for the production of hydroelectricity and its supply to the consumers by electricity distribution companies (DISCOS) under the Pakistan Electric Power Company (PEPCO) being the other integrated company. Currently, there are 12 distribution companies and a National Transmission And Dispatch Company (NTDC) which are all in the public sector except Karachi Electric in the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan.

As of 2016 on average, more than 80% of Pakistan's population had access to electricity. [1]

Following 2022 dearth of imported LNG in Pakistan, the country indicated it would quadruple its coal power plants, which use domestic coal.[2] The inevitable outcome has occurred: the swift depreciation of the rupee has diminished business confidence. The frequent increases in electricity, gas, petrol, and diesel prices are also substantial contributors, driving inflation and consequently decreasing industrial production. [3]

History

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Pakistan's electricity sector is a developing market. For years, the matter of balancing the country's supply against the demand for electricity had remained a largely unresolved matter. The country faced significant challenges in revamping its network responsible for the supply of electricity. Electricity generators were seeking a parity in returns for both domestic and foreign investors indicating it to be one of the key issues in overseeing a surge in electricity generation when the country was facing growing shortages. Other problems included lack of efficiency, rising demands for energy, and political instability.[4] Provincial and federal agencies, who are the largest consumers, often do not pay their bills.[5] At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels.[6] The country was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts and massive blackouts followed suit.[7] Load shedding and power blackouts had become severe in Pakistan before 2016.[8]

Mr. Naqeeb and Mr. Mohsin said Economic Survey 2020–21 unfolds that Pakistan's installed capacity to generate electricity has surged up to 37,261 MW by July 2020 which stood at 22,812 MW in June 2013, showing the growth of 64 per cent.[9]

Installed capacity

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According to the Pakistan Economic Survey 2023–24, the installed electricity generation capacity reached 42,131 MW in March 2024.For FY2024 , total electricity generation stood at 92,091 GWh against a demand of 68,559 GWh for the same period[10] The electricity transmission network, currently, has the capacity to handle more than 53,000 MVA. [11]

The National Transmission & Despatch Company (NTDC) in Pakistan has finished construction on a double-circuit transmission line, which extends for 29 km from Polan to Gwadar. This new infrastructure has been built in compliance with directives from the Prime Minister and the Federal Minister for Energy. The addition of this transmission line will allow for the import of an additional 100 MW of power from Iran, which will result in increased power reliability and decreased frequency of power outages for the residents of Gwadar and the Makran division. [12]

Electricity generation

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Installed capacity by source in the utility sector FY2021 to 2022
 Natural Gas: 13,423 MW (32.2%)Furnace Oil: 5,943 MW (14.3%)Coal: 5,319 MW (12.8%)List of hydroelectric power stations in PakistanNuclear RE: 3,657 MW (8.8%)Nuclear power in PakistanSolar: 668 MW (1.6%)Other: 374 MW (0.9%)
  •   Natural Gas: 13,423 MW (32.2%)
  •   Furnace Oil: 5,943 MW (14.3%)
  •   Coal: 5,319 MW (12.8%)
  •   Hydro: 10,264 MW (24.6%)
  •   Nuclear RE: 3,657 MW (8.8%)
  •   Wind: 1,995 MW (4.8%)
  •   Solar: 668 MW (1.6%)
  •   Other: 374 MW (0.9%)

Electricity – Total installed capacity (FY2021–22): 41,557MW

Breakdown of Installed Generation Capacity as on FY 2021/2022
Source Installed Capacity (MW) % of Share in Total
Fossil Fuels (Total) 24,688 59.4%
Natural Gas 13,423 32.3%
Furnace Oil 5,943 14.3%
Coal 5,319 12.9%
Non-Fossil Fuels (Total) 16,872 40.6%
Hydro 10,264 24.7%
Nuclear 3,657 8.8%
Wind 1,995 4.8%
Solar 0,667 1.4%
Bagasse 0,374 0.9%
Total Installed Capacity 41,557 100%

Electricity consumption

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  • Electricity – total consumption: 89,361 GWh (2021–2022)
  • Electricity – consumption by sector (2021–2022):
    • Household – 47%
    • Commercial – 7%
    • Industrial – 28%
    • Agricultural – 9%
    • Others – 8%

Governance and sector reform

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Recent reforms include the unbundling and corporatization of the Water and Power Development Authority (WAPDA) into 10 regional distribution companies, 4 government-owned thermal power generation companies and a transmission company, the National Transmission and Despatch Company. The hydropower plants were retained by WAPDA as WAPDA Hydroelectric. All are fully owned by the government. K-Electric Limited (formally known as Karachi Electric Supply Company), which is responsible for power generation and distribution in the Karachi area, is listed on the stock exchanges and is privately owned. Privately owned independent power producers generated 53% of the country's power in FY2016.[13]

In 2019, Alternative and Renewable Energy policy was introduced to promote renewable energy in the country and reduce carbon footprint and greenhouse gas emissions. The policy aims to increase share of green energy to 20% by 2025 and 30% by 2030. As of 2022, only 3% of energy sources in Pakistan are renewables.

Effects of natural and man-made disasters

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During 2010 Pakistan floods and 2005 Kashmir earthquake power stations, power distribution and transmission and other energy infrastructures were damaged. During the floods and rainfalls the recently constructed Jinnah hydroelectric power plant was flooded in addition to severe damages to transmission and distribution network and installations while several power plants and refineries were threatened by rising waters and had to be shut down. Natural gas field output had to be reduced as the flood waters approached the wells. There has also been some concern by Pakistani nuclear activists over the effect of natural disasters on nuclear plants specially over the Chashma Nuclear Power Plant, since the plant lies over a geological fault.[14] Due to over reliance of Pakistan on dams for electricity generation,[6] some environmental impacts of dams such as submergence of usable/ecological land and their negative impact on Pakistan's mangrove forests due to loss of river silt load, as well as increased risk of severe floods have become evident.[15][16][17]

See also

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References

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  1. ^ "Electricity access". Our World in Data. Retrieved 2 November 2020.
  2. ^ Peshimam, Gibran Naiyyar (14 February 2023). "Exclusive: Pakistan plans to quadruple domestic coal-fired power, move away from gas". Reuters.
  3. ^ Aazim, Mohiuddin (28 August 2023). "The hopeless downward spiral". DAWN.COM. Retrieved 28 August 2023.
  4. ^ "DAWN.COM | Pakistan | Loadshedding to end by next summer: US". Archived from the original on 8 November 2009.
  5. ^ Power Politics:Pakistan's energy crisis The Economist, 21 May 2012
  6. ^ a b "The News International: Latest News Breaking, Pakistan News". The News International. Retrieved 6 April 2018.
  7. ^ "Pakistan's Ongoing Electricity Shortage". Energy Tribune. Retrieved 19 October 2011.
  8. ^ "More Crises in Pakistan: Electricity, Flour, Sugar, Water, Sui Gas Crises – What is the way out? : ALL THINGS PAKISTAN". Pakistaniat.com. 4 January 2008. Retrieved 19 October 2011.
  9. ^ "Country's installed electricity capacity increases by 30pc to 29,573MW" (PDF).
  10. ^ Ghumman, Mushtaq (12 June 2024). "Installed electricity capacity stands at 42,131MW". Business Recorder. Retrieved 9 September 2024.
  11. ^ "National Transmission and Dispatch Company - Transmission Network".
  12. ^ "100MW required". 7 February 2023.
  13. ^ Asian Development Bank (2016), Access to Clean Energy Investment Program, Energy Sector Summary, p.2
  14. ^ "Asia Times: Pakistan's nuclear program built on shifting sands". Asia Times. 23 December 1999. Archived from the original on 25 September 2000. Retrieved 19 October 2011.{{cite web}}: CS1 maint: unfit URL (link)
  15. ^ Tarbela Dam and related aspects of the Indus River Basin Pakistan (PDF) (Report). World Commission on Dams. November 2000. Archived from the original (PDF) on 5 July 2010. Retrieved 12 November 2022.
  16. ^ "Disaster Strikes the Indus River Valley". Middle East Research and Information Project. 17 August 2010. Archived from the original on 21 August 2010. Retrieved 19 October 2011.
  17. ^ "US bombs flood-devastated Pakistan". Mwcnews.net. 14 August 2010. Archived from the original on 5 January 2023. Retrieved 19 October 2011.

Further reading

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  • Robert M. Hathaway, editor, and Michael Kugelman, editor, Powering Pakistan, Oxford University Press, USA (15 January 2010), hardcover, 216 pages ISBN 978-0195476262
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